When markets become overstretched, there are often many short term opportunities to grab quick profit against the trend whilst maintaining an overall bullish position. Bears often have a nasty bite! Good luck!

Hi Steve, given EURUSD performance today shouldn't DAX be tanking even lower than 12,850?Not quite sure why market so bullish its like +9.2% from a low about a month ago and eco news hasn't been that impressive.

Equity markets continue to defy gravity and i see this as a temporary technical pull-back. I agree with your sentiment but investors are finding little reward elsewhere. Struggling to see what the catalyst would be for a much required extended consolidation.

I can think of quite a few as in earnings season out of EU not impressive so far, ECB is tightening beg 2018, populism in EU on the rise, Merkel still hasn't formed a govt....and lets not forget what markets did in Aug on N Korea news and the rhetoric is getting worse. However, as you rightly pointed out investors are looking for rewards and dismissing red flags. I witnessed the tech and 2007 crises and this euphoria doesn't feel dissimilar!

Hi guys, wasn't the whole movement yesterday caused just by Catalonia worries? It started shortly before 10am when the deadline passed with short uncertainty period till 1pm and then recovered back to 13000 till the end of the day. What are your expectations for today? I guess the next move (most likely down) might be on Monday, after Spanish government activates article 155 (they are supposed to meet on Saturday). What are your thoughts on that pls?

Absolutely, the sharp sell-off triggered by Catalonia concerns. The main gist of the thread was that despite these concerns the equity markets continue to be bought. Today we are looking to buy dips (intraday). The thing to consider (when saying next move 'most likely down') is that we all know that the Spanish government will trigger article 155 and that Catalonia reaction could be violent at the weekend and yet Dax is higher today! This tells me that any negative reaction from this weekend process will more than likely see the Monday morning dip bought into..... again! Very messy! Good luck!

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